Pune’s Hinjewadi – From Rural to Urban at the Speed of IT

Once an anonymous destination comprising of
small villages in the peripheral areas of Pune, Hinjewadi is now a prime real
estate hotspot. With the launch of the Rajiv Gandhi Infotech Park and consequent
entry of various IT-ITeS majors and multinational companies, Hinjewadi has
witnessed spectacular growth in working population. The accompanying demand for
homes, backed by improving social and physical infrastructure, has made
Hinjewadi one of Pune’s fastest-growing micro-markets in Pune.

During the early 2000s, the Maharashtra
Government introduced its game-changing IT-ITeS Policy which offered liberal
incentives to the technology-driven industries to set up operations in
Hinjewadi. Waiving off stamp duties for owned and leased properties built on
MIDC land also aided the large-scale development of this region. Thus, the
2,800 acres Rajiv Gandhi Infotech Park, also known as Hinjewadi IT Park, came
into existence.

IT Leads the Way

The establishment of the Hinjewadi IT Park
acted as a powerful magnet for IT-ITeS companies, whose arrival and expansion
have been the primary growth drivers for the real estate market of Hinjewadi.
IT-ITeS companies continue to be Hinjewadi’s commercial office occupiers at 85%,
followed by manufacturing (10%) and biotechnology (5%). This region contributes
around 60% of the state’s total IT exports – and with more than 400,000
professionals employed in here, Hinjewadi is a vitally important economic
powerhouse of Pune.

Its residential property market presents an
interesting canvas, as Hinjewadi has evolved into a hub for self-sustaining
townships popular with the region’s discerning working population. This
micro-market also offers a big range of properties from luxury to affordable,
accommodating a wide cross-section of demand. Residential property development
in and around Hinjewadi has transformed it into a vibrant
commercial-cum-residential destination that promotes the walk-to-work concept.

Great Connections

More or less the focal point of Pune’s
IT-ITeS revolution, Hinjewadi has extremely well-developed physical
infrastructure and enjoys excellent connectivity to other parts of the city as
well as Mumbai.

Road

·Mumbai-Bengaluru
Highway: Located very close to Hinjewadi is the NH-4, linking Pune and Mumbai
to Bengaluru, this highway ensures excellent connectivity to Mumbai.

·Rajiv
Gandhi MIDC Road: The Rajiv Gandhi MIDC Road runs parallel to the Pune-Mumbai
highway, and is an alternative route to Hinjewadi Phase I and II that avoids
traffic congestion.

Rail

·The
nearest railway station to Hinjewadi is Pimpri at a distance of 11 km, and Pune
Junction railway station is at 21 km.

·Metro
rail: The 23 km Hinjewadi-Shivaji Nagar metro corridor, expected to be
operational by 2020, will improve connectivity and reduce travel time to the
central areas of Pune.

Residential Supply & Demand

Due to continuous infrastructure upgrades
and rapid growth of commercial developments in the precinct, Hinjewadi has seen
a massive residential supply with 14,000 units launched between 2013 and Q3
2017. Approximately 40% of these units were launched in 2013, recording the
highest new launch supply amidst rising demand.

Although there was a decline in new
launches post-2013 due to negative sentiment, inflation and economic slowdown,
2016 saw a gradual revival in new launch activity in Hinjewadi. Out of the
total units, around 19% are ready-to-move-in properties while 38% are expected
to be completed within the next 12 months.

Only 20% of the residential units in
Hinjewadi are likely to take more than 2 years to be completed, thanks to
developers’ increased focus on completing existing under-projects before
launching new ones so as to ensure compliance with RERA norms.

Average
residential property prices in Hinjewadi increased from INR 5,110/sf in Q1 2015
to INR 5,470/sf in Q4 2016. While a massive supply infusion restricted
exponential price growth in the initial periods, DeMo, RERA and GST impacted
prices post Q4 2016. As a result, property prices in Hinjewadi dipped
marginally post-Q4 2016 and hover at around INR 5,310/sf as of Q3 2017.

Hinjewadi Tech Park’s Phases I, II and III
developed and functional, and Phase IV will be constructed as planned. The
existing road network is being widened to 120 feet and is proposed to pass
through neighbouring localities such as Marunji, Nere and Kasarsai, and
construction in these localities is at full tilt. This and various other
infrastructure upgrades in and around this location will boost future
residential price growth at Hinjewadi, whose strategic location, excellent
connectivity, constantly rising employment opportunities and robust physical
infrastructure will continue to define it as a remarkably vibrant real estate
hotspot in Pune

Pune’s Hinjewadi – From Rural to Urban at the Speed of IT
Reviewed by S. Chitra
on
December 18, 2017
Rating: 5 Pune’s Hinjewadi – From Rural to Urban at the Speed of IT by Mr. Prashant Thakur, ANAROCK Property Consultants Once an anonymous d...